Bove: Another 150-200 Bank Failures Coming

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Richard Bove believes that 150 – 200 more US banks could fail, so many in fact that there might not be enough healthy US banks left to buy whatever is left of all the bad banks.

What does this mean? More room for private equity, hedge funds, and foreign banks to enter the US banking business.

That’s why the FDIC is likely to loosen rules on private equity buying banks, and why the ultimate buyer of failed Texas bank Guaranty was Spain’s Banco Bilbao Vizcaya Argentaria — which received FDIC assistance for the transaction.

The good news: Bove’s outlook is sunnier than that of Meredith Whitney, who sees over 300 bank failures this year.

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